Top Accountant Interview Questions & Answers

Cash basis records revenue when cash is received and expenses when cash is paid. Accrual basis records revenue when earned and expenses when incurred. GAAP requires accrual basis for most businesses. The key distinction: accrual matches revenue with the expenses incurred to generate it (matching principle).

Record all transactions for the period, complete bank reconciliations, reconcile balance sheet accounts (prepaid expenses, accrued liabilities, deferred revenue), record journal entries (depreciation, amortization, accruals), produce financial statements, and review for anomalies. Key habits: checklists, clear task ownership, and documented support for every journal entry.

Accounts Payable (AP) represents money your company owes to vendors — a liability on the balance sheet. Accounts Receivable (AR) represents money owed to your company by customers — an asset. AP is the obligation to pay; AR is the right to receive payment.

Identify whether the discrepancy is in timing, amount (data entry error), or category (misclassification). Trace back to source documents. Check for duplicate entries, missed transactions, or bank errors. Document the investigation steps and resolution. Material unresolved items should be escalated before close.

Depreciation allocates the cost of a tangible fixed asset over its useful life. Methods: Straight-Line (equal expense each period — most common), Double Declining Balance (accelerated — higher expense in early years), Units of Production (expense tied to actual usage). GAAP allows multiple methods; companies must apply them consistently.

Segregation of duties (approver should not also issue payment), three-way matching (PO, receiving report, and invoice must agree before payment), authorization limits, vendor master file controls (changes require dual authorization), and regular AP aging review.

Use STAR format. Describe the error (nature, amount, period affected), how you detected it, your investigation process, and the correction made. Include what you changed in the process to prevent recurrence. Show urgency and a learning mindset.

Prioritize by dependency (what do others need before they can work?), by audit risk, and by materiality. Communicate early if you're at risk of missing a deadline. Use documented workpapers so your work is reviewable without you being physically present.

Answer honestly. If pursuing: state your exam progress, timeline, and which sections you've passed. If not pursuing: explain your reasoning. Employers respect candidates who are direct about their plans and have a coherent rationale.

FASB updates (ASC codification amendments), AICPA publications, CPE courses, Big 4 technical accounting publications (Deloitte, EY, PwC, KPMG all publish technical updates), and relevant industry publications.